A Dutch court has rejected the request to be released on bail by Tornado Cash developer Alexey Pertsev, according to a recent report from DL News. Pertsev will remain in detention as his appeal process moves forward.
So it looks like the developer of sanctioned crypto mixer Tornado Cash stays behind bars after being denied bail.
Pertsev was arrested by Dutch police in Amsterdam in August 2022 for his role in developing the open-source Tornado Cash code. The prominent cryptocurrency mixing service was accused of being misused for money laundering by third parties.
Governments Want Total Transparency
After a multi-day court hearing as part of his trial, Pertsev was convicted of money laundering in May this year and was sentenced to 64 months in prison. In his arguments, the developer said he had no intent to facilitate criminal activities and he was simply a codewriter.
Pertsev has since appealed the conviction, but a Dutch court has denied his request to be released on bail while he prepares his appeal.
As reported, the bail request and Pertsev’s access to a computer to help his defense were denied, said Keith Cheng, Pertsev’s defense lawyer. Cheng added that the rejection was unexpected.
Judith de Boer, Pertsev’s lawyer, believes Pertsev’s release from jail is necessary for a fair appeal for a case that will set a precedent for how much responsibility software developers have for how their creations are used.
“In a case involving such fundamental legal questions, pre-trial detention is unacceptable,” said de Boer. “This unprecedented case addresses when a software developer can be criminally liable for third-party misuse.”
Apart from Pertsev, two other Tornado Cash developers are also facing legal issues, including Roman Storm, Tornado Cash’s co-founder, and developer Roman Semenov.
Following his arrest in the U.S. last year, Storm is facing charges including conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business, and conspiracy to violate the International Emergency Economic Powers Act. He is currently undergoing trial in the U.S. court system.
Meanwhile, Semenov’s current whereabouts are unknown. The developer is speculated to be located in the UAE, but he remains at large and has not been taken into custody.
Pertsev’s supporters have criticized his arrest, arguing that developers should not be held responsible for how their open-source software is used by others.
During his trial, Pertsev and his lawyers also stated that Tornado Cash is a privacy tool and that developers cannot be held liable for how users choose to utilize open-source software. Unfortunately, the Dutch court did not side with Pertsev.
Crypto Community Outrage
The crypto community has reacted with outrage and criticism over the arrest and conviction of Pertsev. Many members have called the 64-month prison sentence an “outlandish” and “sad day for privacy, crypto and open-source.”
Pablito, the head of security research at Blockfence, said the war is not over and that privacy is a human right.
Meanwhile, Web3 expert Alexandre Stachtchenko said Pertsev’s case has gone too far. He expressed strong disapproval of the current regulations around excessive KYC and surveillance practices before they undermine the core principles of democracy.
Byte Federal’s director of product development, Michelle Weekley, said the court ruling shows crypto users must “participate in AML/KYC regulation or go to jail.” He called it a “tyrannical dictatorship.”
Not only the believed unfair treatment, the crypto community members are also concerned the Pertsev verdict could set a dangerous precedent that threatens privacy, open-source development, and the future of the industry.
The court’s approach has stirred controversy as many view the ruling as an overreach of government power and a blow to individual rights.
Crypto lawyers have also argued the decentralized nature of crypto technology requires a more nuanced legal approach than the traditional one applied in Pertsev’s case.
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